Purchase Approval Rules

The Purchase Approval Rules module enables structured approval of purchase orders through a predefined workflow involving multiple stakeholders. Approvals are managed based on user roles, ensuring that each purchase request is reviewed by the appropriate personnel. This module simplifies the purchasing process, improves accountability, and helps organizations control and manage approvals.

The first step in setting up purchase approval in Odoo is to create Approval Roles. Navigate to Purchase > Configuration > Approval Roles and define the roles according to your organization's hierarchy. Each role represents a level of responsibility for approving purchase orders. For example, you can create roles such as Manager, Department Head, or Finance Officer. Assigning these roles ensures that each employee involved in the purchase process has clearly defined authority levels.

Once roles are created, the next step is to define Approval Categories. Navigate to Purchase > Configuration > Approval Categories and create categories to classify purchase orders. Each category can represent different types of purchases, such as office supplies, capital expenditures, or high-value items. Linking categories to roles and approval rules ensures that the approval process is tailored according to the type and value of the purchase, providing better control and organization.

After creating roles and categories, you need to configure Approval Rules to define the workflow logic. Navigate to Purchase > Configuration > Approval Rules and create new rules for different purchase scenarios. Set Price Lower and Upper Limits to specify which role can approve purchases within certain value ranges. Use -1 as the upper limit to indicate unlimited approval authority. Each rule should be linked to an appropriate Approval Category, ensuring that the workflow automatically follows the correct sequence based on the product type and amount.

To activate the approval workflow, navigate to Purchase > Configuration > Settings. Enable the Purchase Order Approval option and select the applicable approval rule to be applied system-wide. Saving these settings ensures that all future purchase orders follow the defined approval hierarchy, enforcing compliance and accountability throughout the procurement process.

After setting up roles and rules, assign approval responsibilities to employees. Navigate to Employees > Employees, select the employee whose approval role you want to define, and open their detailed profile. In the employee's settings page, locate the Approval Role field and select the appropriate role. Save the changes to ensure the employee is included in the purchase order approval workflow according to their assigned responsibilities.

After creating approval categories, assign them to products to control which approval workflow applies. Navigate to Inventory > Products > Products, select the desired product, and in the General Information tab, choose the relevant Approval Category. This ensures that each product triggers the correct approval rules when a purchase request is created, maintaining consistency and proper oversight.

With approval categories assigned, you can create a purchase request for the product. Navigate to Purchase > Purchase and click Create to open a new request for quotation (RFQ). Select the product with the assigned approval category, fill in supplier and quantity details, and save the request. The purchase request will now follow the defined approval workflow, ensuring that each approver in the sequence is notified and can take action according to their role.

Before sending the purchase request for approval, review the Approval Hierarchy to ensure the correct sequence of approvers is maintained. Navigate to the Approval Hierarchy page in the created RFQ, verify the approvers and their sequence, and click Send for Approval to start the approval workflow. This step ensures that the purchase request will be routed correctly, following the defined rules and categories, and helps maintain accountability at each stage.

Once the purchase request is sent for approval, the first sequence approver in the hierarchy can review the request. Navigate to Purchase > Requests for Quotation from the employee dashboard. The approver will see the Approve PO and Reject PO buttons, allowing them to take action on the purchase request according to their assigned role and sequence.

After the first sequence approver has acted, the next sequence employee receives the approval buttons if applicable. This screenshot demonstrates a rejection scenario for the second sequence approver. The workflow ensures that each approver can approve or reject the request based on their sequence, maintaining strict adherence to the approval hierarchy and proper organizational control.

When an approver chooses to reject a purchase order, a popup appears requesting the reason for rejection. This step is essential to provide transparency and accountability. The rejection reason is recorded in the system and visible in the approval history, ensuring that all stakeholders understand why the request was rejected.

Employees who are not assigned to the approval category of a product will not see the Approve PO or Reject PO or Send For Approval buttons. This ensures that only authorized personnel can take approval actions, preventing unauthorized approvals and maintaining strict adherence to the organization's approval policies.

From the admin perspective, it is crucial to track the approval progress of purchase requests. Navigate to the request for quotation (RFQ) and open the Approval Hierarchy page. Here, admins can view which users have approved or rejected each request, including the sequence order. This provides transparency and helps monitor workflow compliance.

The Approval History section provides a detailed record of each purchase request, including the dates and times when approvals or rejections were made. It also displays any rejection reasons provided by approvers. This allows admins to audit the workflow, ensure accountability, and review compliance at any stage of the purchase process.